Evaluation of cost effectiveness of renewable energy system considering carbon trading under clean development mechanism

The Kyoto protocol of 1997 is a crucial step in the implementation of the UN framework convention in climatic change (UN FCCC) as it sets legally binding emission targets for a basket of six greenhouse gases (GHS). A CDM is a project-based mechanism to assist countries in meeting their GHG reduction targets and assists developing countries in achieving their sustainable development objectives. Such CDM projects would also lead to indirect benefits in the host country like income and employment generation enhancement of quality of life. In India, the generation share of electrical power is 80% contributed by fossil fuel. Due to the adverse effect of such type of plant on environmental pollution, forced the government of India to accelerate the tapping of renewable energy source in India.